County attorney sees obstacles to loan from arena benefactor

Red Willow County Attorney Paul Wood told county commissioners Monday he cannot find a legal way for the county to let their arena benefactor loan the county money to pay off the arena loan.

McCook-area farmer-rancher Tom Kiplinger offered to pay off the remaining $234,000 on the loan that the county took out from NACO (Nebraska Association of County Officials) to pay upfront for the portion of the new Kiplinger arena not covered by Kiplinger's initial pledge and donations.

Wood told commissioners at their Sept. 26 meeting that there are only several ways the county and/or county board can borrow money, and Kiplinger's offer does not fall within those parameters.

Wood told commissioners Monday that he and Commissioner Leigh Hoyt researched state statutes throughout the week, but could not find a way to take advantage of Kiplinger's offer.

However, Hoyt said, Kiplinger withdrew his offer Monday morning. Hoyt said, "It would have saved us a considerable amount of money, but Tom's not interested in working with the county on this (offer) now."

Wood said he and the board would always be interested in listening to Kiplinger's suggestions, however, the county, as a government entity, is bound by rules, regulations and laws that sometimes vary from those of non-governmental businesses.

"This board's always interested in saving money," Wood said, "but it's not legal for the county borrow money this way."

In other action:

* County Roads Supervisor Gary Dicenta presented the county's one- and six-year road improvement plan to commissioners during a public hearing.

District 2 Commissioner Steve Downer, of rural Bartley, said he would like some plan for the maintenance of the county road leading north from Highway 6&34 to Frontier County past Harry Strunk Lake. The state armor-coated the road years ago, he said, and now, because of funding constraints, expects the county to maintain it. "I would like to see the state participate," Downer said, however, lacking that, he would like to put the road's maintenance in the county's maintenance rotation plan.

Dicenta said the road could be added to the one- and six-year plan for crack-sealing and armor-coating.

Commission Chairman Earl McNutt said the Bartley-Lebanon road needs attention, as he is noticing excessive flaking, peeking and cracking. Dicenta said the road "looked 10 years old the day they (the contractor) pulled off of it," and that, he and commissioners figured, was eight to 10 years ago.

Dicenta will investigate the possibility of posting load limits on the county road north of McCook's East 11th Street to prevent and/or slow down deterioration of the armor-coating. "Loads are getting entirely too heavy," McNutt said.

Dicenta said it would be worth checking with the county sheriff to see if he and his officers would be willing to enforce such load limits. "I know it would be tough," McNutt said. "It's all local traffic." But, he said, the other option is spending lots of money on maintenance over and above normal wear-and-tear.

Back in regular session, commissioners unanimously approved the one- and six-year road plan.

* Erik Templin of Performax told commissioners that county employee health insurance quarterly reports indicate a positive trend in the number of paid claims during the first three months of the fiscal year compared to a year ago. McNutt said if the trend continues, the county may be looking at more normal health insurance costs than it experienced throughout the whole year last year.

Templin did point out, however, that the county's prescription costs are 25.86 percent of the total charges paid, "and that's high."

Average prescription/pharmacy costs are usually in the teens, he said.

He suggested commissioners investigate replacing its two-tier prescription plan -- brand name and generic -- with a three-tier plan -- adding "non-brand" or "non-preferred" -- which might be a way of bringing pharmacy costs down.

Downer said that while the third non-brand option may encourage users to be more conscientious, it will not generate great savings for the county.

Commissioners and Templin discussed the possibility of increasing out-of-pocket maximums -- which would affect most the people who use the health insurance the most-- and/or the deductible -- which would affect everyone on the plan.

McNutt said, "Everything changes, and grows more expensive. Yes, it will increase out-of-pocket expenses, but, by the same token, it's a given. It's going to have to happen."

Templin said that changes such as increasing out-of-pocket maximums and/or deductible, having employees pay a portion of their insurance premium and expanding prescription options shift the costs of insurance to employees, as so many counties have had to do.

The county's health insurance deductible are $250 for an individual and $500 for a family. The national average is $450/individual and $900/family. The county's current out-of-pocket maximums are $500 for an individual and $1,000 for a family. The national average is $1,500-$2,000/individual and $3,000-$4,000/family.

Hoyt asked that Templin or co-agent Ray Meyer return in December to facilitate whatever changes commissioners feel are necessary, in order to implement them in January.

* County Treasurer Marleen Garcia recommended to commissioners that her office refund sales tax charged to two county residents when they rented county graders and/or backhoes for road work. Garcia said state statute requires that sales tax be charged on such a service only if the resident/customer runs the equipment himself, and not if the county provides the operator with the equipment.

Garcia will refund $6.27 to Arlan Rathe and $33 to Richard Drake.

* Commissioners and Garcia briefly discussed Charter Communications cable television franchise fees to be paid to the county in 2006. Garcia said Charter paid $3,478.83 in March 2005. Neither she nor commissioners said they were familiar with the contract, signed by a former set of commissioner, that determine how franchise fees are determined.